Home › Guides › Audi Car Finance Claims — PCP and HP Mis-Selling Guide

Audi Car Finance Claims — PCP and HP Mis-Selling Guide

Last updated: 28 February 2026

## Are You an Audi Owner Who Took Out Car Finance During the FCA Investigation Period? Audi vehicles were commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during a significant period of investigation by the Financial Conduct Authority (FCA). The FCA’s probe, which ran from 6 April 2007 to 1 November 2024, found that these financial products were often affected by discretionary commission arrangements (DCAs), leading to potential overcharging for thousands of car owners. With an estimated 12.1 million eligible agreements (FCA, March 2026) across the industry and £7.5 billion in total compensation potentially due (FCA estimate), it’s important for Audi owners to understand their rights. ## How Audi Vehicles are Typically Financed When purchasing a new or used Audi, many buyers opt for financing through well-known lenders such as Volkswagen Financial Services, Black Horse, and Barclays Partner Finance. These financial institutions provide PCP and HP agreements tailored specifically for car purchases, which can make owning an Audi more accessible by spreading the cost over time. ### Personal Contract Purchase (PCP) A PCP agreement allows you to pay a smaller initial deposit and lower monthly payments compared to other types of finance. At the end of your contract, you have several options: return the vehicle, buy it outright for its Guaranteed Future Value (GFV), or trade it in on another car. ### Hire Purchase (HP) An HP agreement lets you take full ownership of the vehicle once all payments are made. This is a straightforward and transparent financing option that requires no balloon payment at the end, unlike PCP agreements. ## The FCA Motor Finance Investigation and Audi Owners The FCA investigation uncovered widespread use of DCAs across the car finance industry. These arrangements allowed lenders to receive additional commission from dealers based on the interest rate set for each loan agreement. This practice led to higher-than-necessary interest rates being charged, affecting many consumers who took out PCP or HP agreements during this period. For Audi owners specifically, these arrangements could have resulted in paying more than necessary for their car finance agreements. With 12.1 million eligible agreements and an estimated £7.5 billion total compensation due (FCA estimate), it is crucial to assess whether your finance agreement was impacted. ## How to Information about agreements covered by the FCA schemehe scope of the FCA investigation, you should consider several factors: - Agreement Type: Was it a PCP or HP contract? - Date Range: Does your loan fall between 6 April 2007 and 1 November 2024? - Lender: Did you finance through Volkswagen Financial Services, Black Horse, or Barclays Partner Finance? If all these conditions apply to your agreement, there is a possibility that the DCA may have increased your interest rate, resulting in overcharging. ## Which Lenders Provided Finance for Audi? ### Volkswagen Financial Services Volkswagen Financial Services (VWFS) is one of the primary lenders offering car finance solutions, including PCP and HP agreements, to Audi buyers. VWFS provides a range of financial products designed specifically for Volkswagen Group brands such as Audi, Skoda, SEAT, and Volkswagen. ### Black Horse Black Horse is another significant financier in the automotive industry that offers various financing options for Audi vehicles. Their services include competitive interest rates and flexible repayment plans tailored to meet individual customer needs. ### Barclays Partner Finance Barclays Partner Finance also plays a crucial role by providing car finance solutions to Audi buyers through its partnership with dealerships across the UK. They offer both PCP and HP agreements, making it easier for consumers to secure financing on their preferred Audi model. ## How to Complain Directly to Your Lender for Free If you believe your Audi finance agreement was affected by DCAs, you can initiate a free complaint directly with your lender without incurring any costs. It’s important to know that Volkswagen Financial Services, Black Horse, and Barclays Partner Finance have established internal procedures to handle such complaints efficiently. You should gather all relevant documentation related to your finance agreement, including the original contract, payment receipts, and any correspondence between you and the lender. Then, submit a formal complaint letter outlining the issues you are facing. Your lender will then investigate and respond within a specified timeframe (usually up to eight weeks). ### Important Note: You can complain directly to your lender for free - you do not need a claims management company. ## What Compensation Could Audi Owners Receive? The amount of compensation that Audi owners could receive varies based on the specifics of their finance agreement. On average, affected consumers might be entitled to £829 (FCA estimate) in compensation. However, this figure can fluctuate depending on factors such as the interest rate difference, loan term length, and total amount financed. ## Escalating to the Financial Ombudsman Service If your lender does not resolve your complaint within eight weeks or you disagree with their decision, you have the right to escalate it to the Financial Ombudsman Service (FOS). The FOS is an independent body that provides a free service for resolving disputes between consumers and financial institutions. They will review your case impartially and make a binding decision. ## Timeline The timeline for when to expect the FCA redress scheme to process complaints can vary depending on the complexity of each individual case. However, it’s expected that the process could take several months from the time you submit your complaint to receiving compensation. It is essential to be patient during this period and keep all communication with your lender or the FOS organized. ## Sources and References - Financial Conduct Authority (FCA) estimates: 12.1 million eligible agreements (FCA, March 2026), £7.5 billion total compensation due, and £829 average per eligible agreement compensation per case. - ONS Census data for population statistics (ONS Census 2021). - Lender-specific information from the official websites of Volkswagen Financial Services, Black Horse, and Barclays Partner Finance. By understanding these key points, Audi owners can better deal with their options regarding potential overcharging on their car finance agreements. Remember to act promptly if you suspect your agreement was impacted by DCAs during the FCA investigation period.

Key FCA Figures

The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.

You can complain to your lender directly for free. You do not need a claims management company.

--- MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.

Frequently Asked Questions

What is the average compensation amount for mis-sold Audi car finance agreements?

The average compensation paid out in cases of mis-sold personal contract purchase (PCP) or hire purchase (HP) agreements through the FCA redress scheme is £829 (FCA estimate).

How can I complain about a mis-sold Audi car finance agreement?

You have the right to contact Audi directly and file a complaint regarding any issues with your PCP or HP agreement. This process is free of charge, and you do not need to use a claims management company.

What should I do if my dispute with Audi over car finance is unresolved?

If you are unable to resolve the issue directly with Audi, you can escalate your complaint to the Financial Ombudsman Service (FOS). The FOS provides an independent and impartial service for resolving disputes between consumers and financial services providers.

How many individuals have been affected by mis-sold PCP agreements in the UK?

According to figures from the Financial Conduct Authority (FCA), 12.1 million eligible agreements were potentially mis-sold in the UK between 6 April 2007 and 31 October 2023 (FCA estimate).

What is a discretionary commission arrangement (DCA) in Audi car finance?

A Discretionary Commission Arrangement (DCA) refers to an agreement where financial advisers receive additional compensation for recommending certain products, such as PCP or HP agreements. In the context of Audi car finance, it's important to understand if your dealer was incentivized to recommend a particular type of financing that may not have been in your best interest.

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.